S&P 500 Price Forecast – S&P 500 pulls back to kick off Wednesday session
The S&P 500 has pulled back significantly to kick off the Wednesday session, but we are starting to see signs of life again near the 2780 region. At this point, I think that the market is probably trying to get to higher levels, and obviously we can break to a fresh, new high that would be a very bullish sign. However, in the FOMC Meeting Minutes we will look for signs of where interest rates are going to go. If interest rates continue to be likely to rise significantly, that could be negative for stocks, as we reprice the “risk free rate” in the treasury markets. If we do break down from here I expect that the 2750 level will attract certain amount of attention.
Break down below that level could send this market down to the 2700 level, which is the bottom of the uptrend from what I see. A breakdown below that level is significantly negative, but that’s something we probably won’t see today unless a catastrophic bit of news comes out. I think that we are more likely to find buyers than sellers but be cautious about your position size as we will probably have a lot of turbulence around the FOMC statement release, and of course multiple potential headlines around the world. Earnings are still good, and that of course is the main driver of stocks, so that means that as long as they are good, there will be an underlying demand for stocks in America.
S&P 500 Video 18.10.18
This article was originally posted on FX Empire
